Contribution Rates

Overview

Contribution Rates

Funds to pay CCCERA benefits are derived from member and employer contributions as well as investment earnings on those contributions. The contributions are made up of two components.

Normal Cost

The Normal Cost is the annual contribution rate that, if paid annually from a member’s first year of membership through the year of retirement, would accumulate to the amount necessary to fully fund the member’s retirement-related benefits. Accumulation includes annual crediting of interest at the assumed investment earning rate.

The Normal Cost can be thought of the cost of granting the retirement service credit as the member provides service to the employer. The member contribution rate is a portion of the Normal Cost. The member contribution rate is determined in accordance with the appropriate statute, and the remainder of the Normal Cost is part of the employer contribution rate.

If the Normal Cost were contributed every year, and all actuarial assumptions were met, the retirement plan would always be 100% funded. 

Contribution to the Unfunded Actuarial Accrued Liability

To the extent the Normal Cost contributions have not accumulated to the amount necessary to fully fund the retirement benefits that have already been granted, there exists an Unfunded Actuarial Accrued Liability (UAAL). The UAAL is a debt owed to CCCERA for benefits that CCCERA is obliged to pay. This debt is paid off much like a mortgage where the employer is the borrower and CCCERA is the bank.

The UAAL contribution is made up of interest and principal. The interest portion is simply interest on the UAAL at the actuarial assumed rate of return. This is interest that CCCERA would be expected to earn if the plan were 100% funded. The principal portion of the UAAL contribution is determined in accordance with the Board’s Actuarial Funding Policy.

Note: Once CCCERA determines the member and employer contribution rates, the employer may require the member to pay all or part of the employer contribution rate (Gov. Code Section 31631), and for Legacy members (General Tiers 1 and 3, and Safety Tier A and C) the employer may pay a portion of the member contribution rate (Gov. Code Section 31581.1).

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Member Contribution Rate Calculator

Your member contribution rate is determined by your tier, your employer, and for legacy members, your age at entry into the system. By entering your information in below, the calculator can determine your member contribution rate. 

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Contribution Rates Effective July 1, 2017 to June 30, 2018

At its October 20, 2016 meeting, the Retirement Board reviewed and accepted the actuary’s valuation report for the year ending December 31, 2015 and adopted the recommended employer and employee contribution rates, which will become effective on July 1, 2017.

The contribution rate packet below has member and employer contribution rates for the period July 1, 2017 through June 30, 2018. The contribution rates below have not yet been adopted by the Contra Costa County Board of Supervisors.

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Contribution Rates Effective July 1, 2016 to June 30, 2017

At its July 8, 2015 meeting, the Retirement Board reviewed and accepted the actuary’s valuation report for the year ending December 31, 2014 and adopted the recommended employer and employee contribution rates, which will become effective on July 1, 2016.

The contribution rate packet below has member and employer contribution rates for the period July 1, 2016 through June 30, 2017. The contribution rates below have not yet been adopted by the Contra Costa County Board of Supervisors.

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Contribution Rates Effective July 1, 2015 to June 30, 2016

At its October 8, 2014 meeting, the Retirement Board reviewed and accepted the actuary’s valuation report for the year ending December 31, 2013 and adopted the recommended employer and employee contribution rates, which will become effective on July 1, 2015.

The contribution rate packet below has member and employer contribution rates for the period July 1, 2015 through June 30, 2016. The contribution rates were adopted by the Contra Costa County Board of Supervisors December 2, 2014.

Contribution Rate Packet - Fiscal Year 2015-16

Commands